KKR to sell Seven West stake

US private equity firm KKR is to sell its entire 12 per cent stake in Seven West Media.

The decision to sell the stake, worth about $265 million, was announced after the close of the stock exchange on Tuesday.

KKR - formerly called Kohlberg Kravis & Roberts - cut its ties to Seven after an almost seven-year partnership.

The move also follows a major restructuring of Seven in 2011 when Seven West Media was created through the acquisition of Seven Media Group by West Australian Newspapers.

Chairman of Seven West Media Kerry Stokes said on Tuesday that KKR had been a great partner of Seven for nearly seven years.

"We understand their decision to sell their shareholding in the company," Mr Stokes said in a statement.

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In a statement, Justin Reizes from Kohlberg Kravis Roberts & Co said: "This decision was a tough one. KKR has been a shareholder in and partner with Seven for seven years...

"Our decision to sell our shareholding is based on a broad range of parameters on which we based our initial investment and how we sought returns for our investors."

KKR said it had enjoyed a very strong relationship with Seven since December 2006 and its investment period was five to seven years, and this investment was at the longer end of that period.

The KKR announcement came on the same day as incoming Seven West Media boss Tim Worner pledged to focus on producing quality content while cutting costs.

Mr Worner will from July 1 replace Don Voelte as chief executive of the diversified media house, which includes the Seven television network, The West Australian Newspaper, Pacific Magazines, regional Western Australia radio stations and Yahoo!7.